Thanks to our friend W.G. for pointing out again a fascinating article written for Harper's magazine in November 1983 about the Bank for International Settlements by the veteran journalist Edward Jay Epstein, who seems to have been given unusual access to top BIS officials. Epstein's article shows the BIS running the world financial system almost entirely in secret and, in the process, frequently intervening in the gold market or making gold available to arbitrageurs as part of a general system of currency market regulation -- and swapping gold particularly as part of a policy of supporting the U.S. dollar.

Of course this was 27 years ago and the BIS couldn't possibly be part of such things anymore, could it? After all, Kitco senior market analyst Jon Nadler says central banks have no motive to manipulate the gold market, and CPM Group executive Jeff Christian says central bankers hardly ever think about gold. (That would explain why they have chosen him as their gold consultant.)

Epstein's article is headlined "Ruling the World of Money" and you can find it in the archive of his Internet site here:

Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource

Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.

For Prophecy's complete press release about its production plans, please visit: